What's new in the The Barefoot Investor 2020 Edition vs the 2019 one?
What's New in The Barefoot Investor 2020?
deme on 16/01/2021 - 17:26
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Was the originally really 20 years ago?
ING is no longer as good as he says it is…
But that's not in the book either.
Agree.
I don't know how anyone can trust financial advice from a guy who can't afford shoes.
The guys is actually a silent millionaire he lost a lot in a fire that burnt down his house but he actually lives on a fairly large sized property (talking a couple acers) out in Victoria - i dont know him personally but i know people that do apparently he is a major tight ass (but hey thats how ppl get rich)
He is in his early 40s has (i think) 3 children had a huge set back in life but very wealthy now - you got to respect that?
Im not saying i follow him religiously but he isnt bullshit artists in the sense his advice doesnt involve luck ie brought bitcoin and got rich, i got this property in some area which tripled in 5 years etc. He has a simple (ill admit boring) method to creating wealth which in a nut shell is spend some/save some/invest some do this via maximising what you earn now (after you have paid off your house)
It is basic i will agree but his advice is solid esp for the large number of debt riddled Australians out there
Comes with COVID
It amazes me how many people take the ideas in this book as literal instruction. It is simply a foundation of a way to help manage your finances for people who have little to no idea. The ideas are sound, but everybody's situation is different and people think you have to literally follow his every step exactly or you will fail.
The super fund he mentions as the cheapest is now one of the dearest with fees.
You sure about that?
https://pds.hostplus.com.au/6-fees-and-costs
$78+0.02% for Index Balanced.
How do you beat that?
Yeah that doesn't answer how the Indexed Balanced is the dearest in fees. The HOSTPLUS example in that comparison has 1.1% fees, which is their Mysuper product not the Indexed Balanced option
I'll take that as you know you are wrong.
$78+0.02% for Index Balanced
I'm uneducated. I fuddle my way trying to make sense of any of it without spending months on it.
So if index balanced is only 0.02%, what is the trade off? Poor returns?
@dmbminaret: The returns are high over time as they are investment into shares.
They are cheap because it's a passive investment. No need to pay anyone to do research, no need to care about selling property, rail roads etc you invest in the Aussie and International shares tracking an index.@dmbminaret: Precisely that. There are other ETFs out there that significantly outperform HostPlus with marginally higher fees. It's an easy and safe investment but it's by no means the best value.
How do you beat that?
Manage it yourself…
Self managed super funds are expensive due to all the compliance costs.
Self managed super funds are expensive due to all the compliance costs.
Still way less than a super fund… Mine works out around 0.25% on fees.
Wrong numbers buddy. The admin fee is $109.83 and the investment fee is 0.0665% (0.0165% + 0.05%) You're only looking at some of the account keeping and trustee fees, not their investment fees.
But it's a pretty bad investment over the long term because it holds a lot of fixed interest and cash. The indexed share options look interesting, but god HostPlus don't like displaying their performance anywhere easily readable.
Changed my life following his principles. If he ran a cult, id be in it. His attitude towards financial literacy for kids is amazing. Down with dollarmites
The author added another 0 to their bank account.
Why do people read this junk and think that it is some sort of magical playbook for creating wealth?
There is plenty of free information on the internet that actually works. DYOR and one may go from x to 2x, 5x or even 10x in six months.
/r/wallstreetbets
DYOR and one may go from x to 2x, 5x or even 10x in six months
Or -x ;)
All asymmetrical investing comes with risk. If people can’t accept a 100% loss then they don’t deserve a 1000% gain.
I actually found it way to basic for my needs, thus the book was practically useless to me, but I guess it's good for people who can't manage their money or don't have the basics under control.
Its because its a simple easy to follow foundation. Its the best $19 ive ever spent
I'm just so confused as to why super fund, death insurance or basic home loan information isn't taught to us in school?
We spend so much time learning pointless history but aren't taught basic tools we will need in income management…
I still have no idea about my super or the fees involved etc…
Maybe I should read this book…considering its been sitting on my shelf for 4 years…but hey, who the hell reads books these days..
Do you think we should learn basic accounting in high school?Yes and I found the book great to read even if you have a good grasp already.
It sounds like a lot of it is just common sense but I bought it with the idea that if I gain one piece of information from it then its worth the cost…
It's definitely NOT common, or common sense.
It's a short book, and worthwhile read.
Maybe I should read this book…considering its been sitting on my shelf for 4 years…but hey, who the hell reads books these days..
I downloaded the audiobook
History isn't pointless. It's the reason why Pauline Hansen isn't PM.
But Dutton could be. It seems the school curriculum needs to incorporate more 1933-1945 European History as well as Harry Potter.
information isn't taught to us in school?
So they can make money off you
It is taught, you just weren't paying attention.
school doesn't exist to provide financial education.
School education exists only to provide ongoing supply of worker drones.I'm pretty sure school is designed to train you to be a good little consumer, although this kind of stuff should be taught.
I did 'commerce' at my school which covered such topics amongst others. It may have been an elective.
I agree school should involve practical education to a certain extent, but I also think that someone who buys this book and lets it sit on the shelf for 4 years probably wouldn't have paid much attention if those topics were taught in school anyway.
He campaigns for exactly this. Dollarmites was the worst thing to happen to financial literacy. They suck you in to the credit trap.
I didn't know which super option to pick before the book. It's obvious in hindsight but very valuable.
This one comes with shoes. False advertising if you ask me.
That would be great value of it did.
My guess for the 1sr December 2020 edition talks about tax cut being brought forward, and super guarantee increasing to 10% following year?
There's no way super will be lifted, the mood at parliament to do so is just not there.
You mean they will pass a law in next six months to stop the lift?
Liberals are trying to screw over the working class by both stopping the rise and making it possible to take home your 9.5% (which would get taxed much higher than super which gets taxed at 15%)
@deme: How is that screwing over the working class? It gives you an option to take it home instead of having it locked away for many many years.
@bobbified: I already answered that:
which would get taxed much higher than super which gets taxed at 15%
@deme: The option is there for you to choose. If you don't like paying the extra tax, you can still direct it into your super. So I wouldn't exactly call it "screwing over" anyone.
@bobbified: Super gives a tax efficient long term investment vehicle to the masses. It's even protected from bankruptcy.
This "option" is meanly a way to continue their attack on super and make people think they are getting a pay rise.
More tax money will need to be spent on pensions due to lack of super. Who's going to pay for that?
Just raise the minimum wage, that's better for everyone.
@deme: Timelocking big amounts of capital for 40 years to avoid paying a few % in tax is the wrong way to accumulate assets.
@whooah1979: Is that what you think super is? A piggy bank?
It's invested to increase you wealth and its tax free to withdraw at the end.
You could benefit from reading Barefoot Investor.
@deme: People that DYOR in 2020 would’ve realised that they could take out $20000 from super thanks to covid. They could've used that money to invest in financial instruments that >4x by the time of the fireworks on NYE.
They may then enjoy 1/2 of the gains tax-free in 2021 while waiting for the portfolio to appreciate by >10x. They can then repay the gains and do a few other steps to make the whole portfolio tax free.
People won't find plays like that in a $10 softcover. Softcovers are only useful for people that want to save $78+0.02 on super fees.
The link is a paywall, but it may be worth a read.
https://www.smh.com.au/politics/federal/with-superannuation-…If you were given the option to have some of your superannuation as pay right now rather than keep it aside for retirement, would you take it? The choice could soon be yours
@whooah1979: That wasn't worth a read that was junk.
People that DYOR in 2020 would’ve realised that they could take out $20000 from super thanks to covid. They could've used that money to invest in financial instruments that >4x by the time of the fireworks on NYE.
They may then enjoy 1/2 of the gains tax-free in 2021 while waiting for the portfolio to appreciate by >10x. They can then repay the gains and do a few other steps to make the whole portfolio tax free.
Did you do this? Or are you looking back in hindsight?
They can then repay the gains and do a few other steps to make the whole portfolio tax free.
This is too funny mate. Describe step by step how you made a portfolio outside of super tax free unless your scheme is just go on disability pension.
@deme: Sorry. I don't accept Afterpay (btw congrats to anyone that hodl APT from $8 to $135 ATH on 15.01. It's looking 💪 🚀 🚀 ).
@deme: The tax concessions on super overall are more than the predicted reduction in pension, so there is nothing to pay for.
@deme: Details in here
https://treasury.gov.au/sites/default/files/2020-11/p2020-10…Nice summary here
https://www.macrobusiness.com.au/2020/11/universal-pension-b…
making it possible to take home your 9.5% (which would get taxed much higher than super which gets taxed at 15%)
Um, that's not how super works. It is paid by your employer based on your wage/salary and if there is extra %, it is the employer who pays it.
You don't get to keep it as part of your wage/salary.
@deme: That is great news for people that wants to be in control of their own money.
https://www.smh.com.au/politics/federal/take-home-pay-or-put…
The federal government is considering giving workers the choice of putting more money into their superannuation or having more take-home pay in an attempt to break a political deadlock ahead of a looming rise in the super guarantee.
they wear shoes this year.
Why do people get so mad at this author / book.
It's simple, sound financial advice for people that have no idea about home loan interest / rates, compounding interest, savings.
I read the book and already did most of what it said ( I don't split my bank account into all the different things he says to, but it did prompt me to refinance to a better home loan interest rate and review my super investments ), but still found it a relatively interesting perspective.
People act like he's scamming everyone of he's forcing you to buy it.
And then other people act like they are geniuses because they already know the basic financial advice he offers.
If you're so smart, just don't buy the book? And if his advice is for morons and you are so smart because you already know it, why didn't you write the book and make millions of dollars????
He's probably financially aided Australians more than anyone else in recent history( if you think about the reach this book has, and the millions of dollars his readers will save on interest and super returns, as opposed to if they didn't read the book and stayed on their 4.8% home loan and 4 separate super funds paying 4 separate sets of fees )
Haters gonna hate
He is a good writer! My dad forwarded on his email newsletter last year with this article in it:
Don’t get a snag from Bunnings — buy this instead
https://www.barefootinvestor.com/articles/dont-get-a-snag-fr…And some amazing feedback from someone who followed it:
https://www.barefootinvestor.com/articles/qna/safe-as-houses
Some good advice in there… it's up to every individual to consider what he says (like anyone giving advice in books and online etc.) and take it or leave it!
Everything he says is common sense but most people are too lazy to act on it.
Nothing was new in the original 20 years ago, so I think you are safe.
But just in case: be religiously sceptical of crypto coins.